CONTRACT  TITLE:     POWER  PURCHASE  AGREEMENT    CONTRACT  NUMBER:    

AWARD  DATE:        

CONTRACT  PERIOD:       20  Years  from  the  Actual  Commercial  Operation  Date    SERVICE:   Electricity  Service  Provision    BUYER  CONTACT:  

TITLE:  

BUYER  TEL:    BUYER  EMAIL:  

SELLER  NAME:  

SELLER  CONTACT:  

TITLE:  SELLER  

TEL:  SELLER  

EMAIL:  

 PURPOSE:   To  establish  a  service  contract  for  delivery  of  electricity.    

 

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TABLE  OF  CONTENTS        

ARTICLE  1:  DEFINITIONS  ..........................................................................................................  1  

ARTICLE  2:  TERM  ...................................................................................................................  11  

ARTICLE  3:  ENGINEERING  AND  CONSTRUCTION  REQUIREMENTS  ............................................  14  

ARTICLE  4:  DELIVERY  OF  POWER,  METERING  &  MONITORING  ................................................  18  

ARTICLE  5:  BILLING  AND  PAYMENT  ........................................................................................  23  

ARTICLE  6:  REMOVAL  OF  GENERATING  FACILITY  .....................................................................  24  

ARTICLE  7:  SELLER’S  ADDITIONAL  OBLIGATIONS  .....................................................................  25  

ARTICLE  8:  FORCE  MAJEURE  ..................................................................................................  31  

ARTICLE  9:  DISPUTE  RESOLUTION  ..........................................................................................  34  

ARTICLE  10:  DEFAULT  &  REMEDIES  ........................................................................................  35  

ARTICLE  11:  REPRESENTATIONS,  WARRANTIES  AND  COVENANTS  ...........................................  40  

ARTICLE  12:  ASSIGNMENT  AND  FINANCING  ...........................................................................  43  

ARTICLE  13:  OTHER  TERMS  &  CONDITIONS  ............................................................................  47  

   EXHIBITS  Exhibit  A  –  Technical  and  Warranty  Requirements    Exhibit  B  –  Engineering  and  Construction  Requirements    Exhibit  C  –  Operations  Forecasts,  Scheduling  Protocols,  &  Monitoring  Exhibit  D  –   Form  of  Attestation  Exhibit  E  –  Insurance  Requirements  Exhibit  F  –  Workforce  Plan  Exhibit  G  –  Form  of  Certification      SCHEDULES  Schedule  1  –  Grant  of  Access  Rights  Schedule  2  –  Early  Termination  Fee  Schedule  3  –  Notice  Information  

 

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Schedule  4  –  Description  of  Generating  Facility  Schedule  5  –  Project  Site  Description  Schedule  6  –  Contract  Price  Schedule  7  –  Expected  Annual  Contract  Quantity  Schedule  8  –  Project  Milestones  Schedule  9  -‐  Project  Management  Reimbursement    Schedule  10  -‐  Cash  Flow  Tables  Showing  Value  of  Solar        

 

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 This  Regional  Power  Purchase  Agreement  is  dated  as  of    (“Effective  Date”),  and  is  witnessed,  acknowledged,  and  executed  by  authorized  representatives  of  ,  a    limited  liability  company  (“Seller”)  and  the    (“Buyer”),  as  evidenced  by  their  signature  on  the  last  page  of  this  document      

R  E  C  I  T  A  L  S        A.   Buyer  wishes  to  meet  its  power  requirements  cost  effectively,  efficiently  and  in  an  

environmentally-‐friendly  manner;    

B.   Buyer  has  solicited  proposals  from  persons,  firms,  organizations,  and/or  other  legal  entities  to  provide  such  power  from  renewable  resources  in  a  cooperative/joint  solicitation  led  by  the  Council  of  Independent  Colleges  in  Virginia;  

 

C.   Seller  is  in  the  business  of  designing,  constructing  and  operating  solar  photovoltaic  (“PV”)  electric  generating  systems  for  the  purpose  of  selling  power  generated  by  the  systems  to  its  Buyers;  

 

D.   Buyer  has  selected  Seller  to  design,  construct,  own  and  operate  solar  PV  generating  systems  to  be  located  on  its  property  subject  to  the  terms,  conditions,  covenants  and  provisions  set  forth  herein  (each,  a  “Facility”  and  collectively  the  “Generating  Facilities”);  

 

E.   Seller  intends  to  construct,  own,  and  operate  renewable  energy-‐powered  Generating  Facilities    that  shall  qualify  as  an  eligible  renewable  energy  resource  (“ERR”)  under  the  State  of  Virginia  Renewable  Energy  Portfolio  Standard  (“RPS”)  and  desires  to  sell  electricity  produced  by  such  generating  facility  together  with  other  attributes  to  Buyer  pursuant  to  the  terms,  conditions,  covenants  and  provisions  set  forth  herein;  

 

F.   Buyer  desires  to  purchase  electricity  generated  by  Seller’s  Generating  Facilities,  together  with  all  Environmental  Attributes  pursuant  to  the  terms  and  conditions  set  forth  herein;  

 

NOW,  THEREFORE,  in  consideration  of  the  mutual  promises  contained  herein  and  other  valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby  acknowledged,  the  parties  agree  as  follows:  

 

 

 

     

 

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ARTICLE  1:  DEFINITIONS  

 References  in  this  Agreement  to  the  terms  or  phrases  below  have  the  meanings  as  set  forth  in  this  Article.   In  the  event  of  a  conflict  between  the  information  in  this  Article  and  any  more  specific  provision  of  this  Agreement,  the  more  specific  provision  shall  control.  

   

1.1 “Actual  Commercial  Operation”  means  the  condition  in  which  a  Facility:  (i)  has  been  constructed  in  accordance  with  Prudent  Industry  Practice,  all  Permits,  Requirements  of  Law,  the  specifications  set  forth  in  Exhibit  A  [Technical  and  Warranty  Requirements],  Exhibit  C  [Engineering  &  Construction  Requirements],  and  Schedule  4  [Description  of  Generating  Facility]  of  this  Agreement;  (ii)  Seller  has  successfully  completed  the  Commissioning  Tests,  (iii)  PG&E  has  approved  installation  and  given  its  “Permission  to  Operate”  notification,  (iv)  the  Data  Acquisition  System  has  been  commissioned  and  is  transmitting  data,  and,  (v)  the  Facility  is  capable  of  generating  electricity  for  sale  to  the  Buyer  at  the  Project  Site.  

1.2 “Actual  Commercial  Operation  Date”  the  date  upon  which  Seller  has  notified  Buyer  in  writing  that  it  has  satisfied  the  requirements  of  Actual  Commercial  Operation.  

1.3 “Actual  System  Output”  means  the  amount  of  energy  recorded  by  the  Seller’s  metering  equipment  for  a  Facility  during  the  relevant  Measurement  Period.  

1.4  “Affiliate”  means,  with  respect  to  any  specified  Person,  any  other  Person  directly  or  indirectly  controlling  or  controlled  by  such  specified  Person.  

1.5 “Agreement”  means  this  Regional  Power  Purchase  Agreement,  effective  as  of  the  Effective  Date,  and  entered  into  by  and  between  Buyer  and  Seller,  and  all  exhibits,  and  schedules  (each  an  “Exhibit”  or  “Schedule”,  as  applicable)  attached  hereto  and  incorporated  herein.  

1.6 “Anniversary  Date”  means  the  first  anniversary  of  the  Actual  Commercial  Operation  Date  and  that  same  calendar  date  for  each  succeeding  Contract  Year.  

1.7 “Applicable  Law”  means,  with  respect  to  any  Person,  any  constitutional  provision,  law,  statute,  rule,  regulation,  ordinance,  treaty,  order,  decree,  judgment,  decision,  certificate,  holding,  injunction,  registration,  license,  franchise,  permit,  authorization,  guideline,  Governmental  Authority  approval,  consent  or  requirement  of  any  Governmental  Authority  having  jurisdiction  over  such  Person  or  its  property,  enforceable  at  law  or  in  equity,  including  the  interpretation  and  administration  thereof  by  such  Governmental  Authority.  

1.8  “Bankruptcy  Event”  means  with  respect  to  a  Party,  that  either:  

(a) such  Party  has  (i)  applied  for  or  consented  to  the  appointment  of,  or  the  taking  of  possession  by,  a  receiver,  custodian,  trustee  or  liquidator  of  itself  or  of  all  or  a  substantial  part  of  its  property;  (ii)  admitted  in  writing  its  inability  to  pay  its  debts  as  such  debts  become  due;  (iii)  made  a  general  assignment  for  the  benefit  of  its  creditors;  (iv)  commenced  a  voluntary  case  under  any  bankruptcy  law;  (v)  filed  a  petition  seeking  to  take  advantage  of  any  other  law  relating  to  bankruptcy,  insolvency,  reorganization,  

 

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winding  up,  or  composition  or  readjustment  of  debts;  or  (vi)  taken  any  corporate  or  other  action  for  the  purpose  of  effecting  any  of  the  foregoing;  or    

(b) a  proceeding  or  case  has  been  commenced  without  the  application  or  consent  of  such  Party  in  any  court  of  competent  jurisdiction  seeking  (i)  its  liquidation,  reorganization,  dissolution  or  winding-‐up  or  the  composition  or  readjustment  of  debts  or,  (ii)  the  appointment  of  a  trustee,  receiver,  custodian,  liquidator  or  the  like  of  such  Party  under  any  bankruptcy  law,  and  such  proceeding  or  case  has  continued  undefended,  or  any  order,  judgment  or  decree  approving  or  ordering  any  of  the  foregoing  shall  be  entered  and  continue  un-‐stayed  and  in  effect  for  a  period  of  sixty  (60)  days.  

1.9 “Business  Day”  means   any  day  other  than  a  Saturday,  Sunday,  public  holidays  recognized  by  Virginia  governmental  entities  or  any  other  day  on  which  banking  institutions  in  Virginia  are  required  or  authorized  by  Applicable  Law  to  be  closed  for  business.  

1.10 “Buyer  Act”  means  (i)  an  act  of  Buyer  to  repair  the  Project  Site  or  the  Project  Site  roof  (as  the  case  may  be)  for  any  reason  not  directly  related  to  damage  caused  by  the  Facility,  and  such  repair  requires  the  partial  or  complete  temporary  disassembly  or  movement  of  the  Facility,  or  (ii)  any  act  or  omission  of  Buyer  or  Buyer’s  employees,  Affiliates,  agents,  or  subcontractors  that  results  in  a  disruption  or  outage  in  Facility  production.    

1.11 “Buyout  Date”  has  the  meaning  assigned  to  it  in  Section  2.2.  

1.12 “Buyout  Payment”  has  the  meaning  set  forth  in  Section  2.2  

1.13 “Buyer  Address  for  Payments”  means  the  address  to  which  invoices  to  the  Buyer  should  be  sent,  currently:  

   

1.14 “Buyer  Address  for  Notices”  means  the  addresses  to  which  notices  to  the  Buyer  should  be  sent  as  set  forth  in  Schedule  3  of  this  Agreement.  

1.15 “Buyer  Default”  –  has  the  meaning  set  forth  in  Section  10.3.  

1.16 “Virginia  Renewable  Energy  Portfolio  Standard”  means  the  Virginia  State  Corporation  Commission  voluntary  program  that  encourages  electric  utilities  to  procure  electricity  from  eligible  renewable  energy  resources  to  15%  of  total  procurement  by  2025.  

1.17 “Commissioning  Tests”  means  the  tests  set  forth  in  Exhibit  B  [Engineering  &  Construction  Requirements].  

1.18 “Commencement  of  Work  Date”  means  the  date  on  which  Seller  begins  site  preparation  (including,  but  not  limited  to,  grading  or  clearing  the  site)  of  the  Project  Site  or  the  physical  construction  work  at  the  Project  Site  of  a  Facility.  

 

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1.19 “Commercial  Operation  Deadline”  means  the  date  set  forth  in  the  U.S.  Internal  Revenue  Service  tax  code  regarding  the  current  Business  Energy  Investment  Tax  Credit  (ITC)  qualification  deadline,  if  applicable;  provided,  however,  that  the  Commercial  Operation  Deadline  shall  be  extended  on  a  day-‐for-‐day  basis  for  any  Force  Majeure  Event  or  breach  of  this  Agreement  by  Buyer,  or  to  the  extent  the  ITC  construction  deadline  is  extended  for  a  Facility.  

1.20 “Commercially  Available  Local  Electric  Utility  Provided  Energy”  means  the  current  applicable  PG&E  rate  tariff  time  of  use  price  in  cents  per  kilowatt  hour  for  the  Project  Site.  

1.21 “Contract  AC  Power  Rating”  means  the  AC  power  rating  for  the  Facility  in  a  given  Contract  Year,  as  specified  in  Schedule  4  to  this  Agreement.  

1.22 “Contract  Capacity”  means  the  maximum  instantaneous  output  of  the  Facility  in  kilowatts  AC  measured  at  the  Delivery  Point.  

1.23 “Contract  Price”  means  the  price  in  $U.S.  per  kWh  to  be  paid  by  Buyer  to  Seller  for  the  purchase  of  the  Delivered  Energy,  as  specified  in  Article  4  and  Schedule  6  to  this  Agreement  .  

1.24 “Contract  Year”  means  each  year  beginning  on  the  Actual  Commercial  Operation  Date  and  succeeding  anniversaries  of  such  Date  (“Anniversary  Date”),  and  ending  on  the  date  immediately  preceding  the  subsequent  Anniversary  Date.    

1.25 “Data  Acquisition  System”  means  physical  devices,  data  monitoring  equipment  and  apparatus  associated  with  real-‐time  monitoring  of  the  quantities  of  AC  energy  generated  by  each  Facility  and  complying  with  all  requirements  of  Article  4.  

1.26 “Daylight  Hours”  means  hours  that  the  inverter  would  normally  be  operating.  

1.27  “Daylight  Savings  Adjustment”  means  the  time  periods  that  begin  and  end  one  hour  later  for  the  period  between  the  second  Sunday  in  March  and  the  first  Sunday  in  April,  and  for  the  period  between  the  last  Sunday  in  October  and  the  first  Sunday  in  November.  

1.28 “Days”  unless  otherwise  specified,  shall  mean  calendar  days.  

1.29  “Degradation”  means  forecasted  deterioration  of  the  Facility  calculated  on  an  annual  basis  due  to  normal  wear  and  tear  and  decreasing  efficiency  causing  reductions  in  power  output.  

1.30 “Delivered  Energy”  the  amount  of  Energy  delivered  by  Seller  as  recorded  by  Seller’s  Meters.  

 

 

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1.31 “Delivery  Point”  means  the  metering  point  at  the  load  side  of  the  transformer  for  each  Facility,  as  specified  in  Schedule  4  of  this  Agreement  [Description  of  Generating  Facilities].  

1.32 “Disruption  Period”  means  the  period  of  time  that  a  Facility  is  not  available  due  to  a  Buyer  Act.  

1.33 “Deemed  Generated  Energy”  means  the  quantity  of  electric  energy,  expressed  in  kWh,  that  Seller  reasonably  calculates  would  have  been  produced  by  the  Facility  and  made  available  at  the  Delivery  Point  during  each  Measurement  Period,  determined  by  taking  into  account  during  the  relevant  Measurement  Period  the  pyranometers  or  like  devices  at  the  Facility,  or  if  such  monitoring  equipment  is  unavailable  during  a  relevant  interval,  then  using  available  data  or  interpolated  data  determined  in  accordance  with  Prudent  Industry  Practices.  

1.34 “EA  Agency”  means  any  local,  state  or  federal  entity,  or  any  other  Person,  that  has  responsibility  for  or  jurisdiction  over  a  program  involving  transferability  of  Environmental  Attributes,  including  the  Clean  Air  Markets  Division  of  the  United  States  Environmental  Protection  Agency,  the  Virginia  State  Corporation  Commission,  and  any  successor  agency  thereto.  

1.35 “Early  Termination  Fee”  means  the  fee  associated  with  an  early  termination  of  this  Agreement  in  the  amount  expressed  in  dollars  per  Watt  of  the  Facility’s  size  in  Watts-‐DC  ($/Wdc)  as  set  forth  in  Schedule  2  of  this  Agreement  [Early  Termination  Fee].  

1.36 “Effective  Date”  means  the  date  set  forth  in  the  first  paragraph  of  this  Agreement.    

 1.37 “Energy”  means  the  electricity  generated  by  each  Facility  pursuant  to  this  Agreement,  

as  expressed  in  units  of  kWh.  

1.38 “Environmental  Attributes”  means  any  and  all  credits,  benefits,  emissions  reductions,  offsets,  and  allowances,  howsoever  entitled,  attributable  to  the  generation  from  each  Facility,  and  its  displacement  of  conventional  energy  generation.  Environmental  Attributes  include    but  are  not  limited  to:  (i)  any  avoided  emissions  of  pollutants  to  the  air,  soil  or  water  such  as  sulfur  oxides  (Sox),  nitrogen  oxides  (NOx),  carbon  monoxide  (CO)  and  other  pollutants;  (ii)  any  avoided  emissions  of  carbon  dioxide  (CO2),  methane  (CH4)  and  other  greenhouse  gases  that  have  been  determined  by  the  United  Nations  Intergovernmental  Panel  on  Climate  Change  to  contribute  to  the  actual  or  potential  threat  of  altering  Earth’s  climate  by  trapping  heat  in  the  atmosphere;  and  (iii)  the  reporting  rights  to  these  avoided  emissions  such  as  Green  Tag  Reporting  Rights.    Environmental  Attributes  for  purposes  of  this  Agreement  expressly  excludes  Existing  Financial  Incentives.  

 

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1.39 “Environmental  Attributes  Reporting  Rights”  means  all  rights  to  report  ownership  of  the  Environmental  Attributes  to  any  Person,  including  under  the  Energy  Policy  Act  of  1992,  and  any  regulations  promulgated  thereunder.  

1.40 “Environmental  Laws”  shall  mean  and  include  all  federal,  state  and  local  laws,  statutes,  ordinances,  regulations,  resolutions,  decrees  and/or  rules  now  or  hereinafter  in  effect,  as  may  be  amended  from  time  to  time,  and  all  implementing  regulations,  directives,  orders,  guidelines,  and  federal  or  state  court  decisions,  interpreting,  relating  to,  regulating  or  imposing  liability  (including,  but  not  limited  to,  response,  removal,  remediation  and  damage  costs)  or  standards  of  conduct  or  performance  relating  to  industrial  hygiene,  occupational  health,  and/or  safety  conditions,  environmental  conditions,  or  exposure  to,  contamination  by,  or  clean-‐up  of,  any  and  all  Hazardous  Materials,  including  without  limitation,  all  federal  or  state  super  lien  or  environmental  clean-‐up  statutes.  

1.41 “Existing  Financial  Incentives”  means  (i)  the  ITC  and  any  tax  deductions  or  other  benefits  under  the  Internal  Revenue  Code  or  applicable  state  law  available  as  a  result  of  the  ownership  and  operation  of  the  Generating  Facilities  or  the  Output  generated  by  each  Facility  (including  without  limitation  tax  credits,  accelerated  depreciation,  or  bonus  depreciation)  that  are  in  effect  on  the  Effective  Date  and,  (ii)  any  other  financial  incentives  that  result  from  the  ownership  and  operation  of  the  Generating  Facilities  or  the  Output  that  are  in  effect  on  the  Effective  Date.  

1.42 “Expected  Annual  Contract  Quantity”  means  the  amount  of  Delivered  Energy  and  Environmental  Attributes  that  Seller  expects  to  deliver  from  a  Facility  to  Buyer  hereunder  in  a  given  Contract  Year,  as  set  forth  in  Schedule  7  of  this  Agreement    [Expected  Annual  Contract  Quantity].    

1.43 “Expected  Commercial  Operation  Date”  means  the  date  on  which  the  Parties  expect  a  Facility  to  achieve  Actual  Commercial  Operation,  established  in  accordance  with  Article  3.  

1.44 “Facility”  has  the  meaning  set  forth  in  the  Recitals,  as  further  described  in  Schedule  4.  

1.45 “Fair  Market  Value”  or  “FMV”  means  the  value  a  nationally  recognized  independent,  third-‐party  professional  appraiser  with  experience  and  expertise  in  the  solar  photovoltaic  industry  would  determine  a  photovoltaic  system  to  have  when  negotiated  in  an  arm’s-‐length,  free  market  transaction  between  an  informed,  willing  seller  and  an  informed,  willing  buyer,  neither  of  whom  is  under  compulsion  to  complete  the  transaction.  

1.46 “Financing  Party”  means,  as  applicable  (i)  any  Person  from  whom  Seller  leases  the  Generating  Facilities  or  (ii)  any  Person  who  has  made  or  will  make  a  loan  to  or  otherwise  provide  capital  to  Seller  with  respect  to  the  Generating  Facilities.  

1.47 “Force  Majeure  Event”  has  the  meaning  set  forth  in  Article  8.  

 

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1.48 “Full  Assignment”  has  the  meaning  set  forth  in  Section  12.2.  

1.49 “Generating  Facilities”  or  “PV  System”  means  each  Seller  electricity  generating  facility  as  more  particularly  described  in  Schedule  4  of  this  Agreement  [Description  of  Generating  Facilities],  excluding  the  Project  Sites,  land  rights,  and  interests  in  land.  

1.50 “Governmental  Authority”  means  any  federal  or  state  government,  or  political  subdivision  thereof,  including,  any  municipality,  township  or  county,  special  district  or  any  other  entity  or  authority  exercising  executive,  legislative,  judicial,  regulatory  or  administrative  functions  of  or  pertaining  to  government,  including,  any  corporation  or  other  entity  owned  or  controlled  by  any  of  the  foregoing.  

1.51 “Green  Tag  Reporting  Rights”  means  the  rights  of  a  Green  Tag  purchaser  to  report  the  ownership  of  accumulated  Green  Tags  in  compliance  with  federal  or  state  law,  if  applicable,  and  to  a  federal  or  state  agency  or  any  other  party  at  the  Green  Tag  purchaser’s  discretion,  and  include  those  Green  Tag  Reporting  Rights  accruing  under  Section  1605(b)  of  The  Energy  Policy  Act  of  1992  and  any  present  or  future  federal,  state,  or  local  law,  regulation  or  bill,  and  international  or  foreign  emissions  trading  program,  with  “Green  Tag”  meaning  one  (1)  MWh  of  Environmental  Attributes.  

1.52 “Hazardous  Materials”  shall  mean  any  and  all  (a)  substances,  products,  by-‐products,  waste,  or  other  materials  of  any  nature  or  kind  whatsoever  which  is  or  becomes  listed,  regulated  or  addressed  under  any  Environmental  Laws,  and  (b)  any  materials,  substances,  products,  by-‐products,  waste,  or  other  materials  of  any  nature  or  kind  whatsoever  whose  presence  in  and  of  itself  or  in  combination  with  other  materials,  substances,  products,  by-‐  products,  or  waste  may  give  rise  to  liability  under  any  Environmental  Law  or  any  statutory  or  common  law  theory  based  on  negligence,  trespass,  intentional  tort,  nuisance,  strict  or  absolute  liability  or  under  any  reported  decisions  of  any  state  or  federal  court;  and  (c)  any  substance,  product,  by-‐product,  waste  or  any  other  material  which  may  be  hazardous  or  harmful  to  the  air,  water,  soil,  environment  or  affect  industrial  hygiene,  occupational  health,  safety  and/or  general  welfare  conditions,  including  without  limitation,  petroleum  and/or  asbestos  materials,  products,  and  by-‐products.  

1.53 “Interconnection”  means  the  interconnection  of  the  Project  Site  electrical  system  to  the  Distribution  System,  including  construction,  installation,  operation,  and  maintenance  of  all  interconnection  facilities.  

1.54 “Interconnection  Agreement”  means  the  agreement  between  Buyer  and  the  Local  Electric  Utility  which  sets  forth  the  terms  and  conditions  for  Interconnection  of  the  Facility  and  the  Project  Site  electrical  system  to  the  Distribution  System,  as  amended  from  time  to  time.  

1.55 “Investment  Tax  Credit”  or  “ITC”  means  the  federal  tax  credit  associated  with  the  ownership  of  eligible  renewable  energy  projects  as  available  under  Section  48  of  the  Internal  Revenue  Code  (26  U.S.C.  Section  48).  

 

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1.56 “Kiosk”  means  a  single  viewing  station  for  the  Buyer  and  the  general  public  to  view  the  production  of  electricity  of  the  Generating  Facilities  as  defined  in  Article  4.1(c)  

1.57 “kW”  means  one  kilowatt  of  power  or  nameplate  capacity  expressed  as  peak  power  DC  (direct  current).  

1.58 “kWh”  means  one  kilowatt  of  electricity  supplied  for  one  hour.  

1.59 “Holidays”  for  the  purposes  of  this  Agreement  are  New  Year’s  Day,  President’s  Day,  Memorial  Day,  Independence  Day,  Labor  Day,  Veterans  Day,  Thanksgiving  Day,  and  Christmas  Day.  The  dates  will  be  those  on  which  the  holidays  are  legally  observed.  

1.60 “Interest  Rate”  means,  for  any  date:  

(a) The  per  annum  rate  of  interest  equal  to  the  “Prime  Rate”  published  in  The  Wall  Street  Journal  under  “Money  Rates”  or  such  date  (or  if  not  published  on  such  date  on  the  most  recent  preceding  day  on  which  published);  plus  

(b) Two  percentage  points  (2%);  provided,  in  no  event  may  the  Interest  Rate  exceed  the  maximum  interest  rate  permitted  by  Applicable  Laws.  

 1.61 “Local  Electric  Utility”  means  the  local  electric  distribution  owner  and  operator  

providing  electric  distribution  and  interconnection  services  to  Buyer  &  Seller  at  the  applicable  Project  Site.  

1.62 “Local  Electric  Utility  Tariffs”  means  the  duly  authorized  tariff,  rules,  schedules,  protocols  and  other  requirements  of  PG&E,  as  these  may  be  amended  from  time  to  time.  

1.63 “Lost  Output”  means  the  Deemed  Generated  Energy  calculated  during  Lost  Output  Events  for  the  relevant  Measurement  Period.  

1.64 “Lost  Output  Event”  has  the  meaning  set  forth  in  Section  4.1(d).  

1.65 “Measurement  Period”  has  the  meaning  set  forth  in  Section  4.1(d).  

1.66 “Meter”  or  “Meters”  means  the  physical  metering  devices,  data  acquisition  equipment  and  apparatus  associated  with  the  meters  owned  by  Seller  and  used  to  determine  the  quantities  of  Energy  generated  by  each  Facility  and  to  record  other  related  parameters  required  for  the  reporting  of  data  to  Seller.  

1.67 “Metered  Energy”  means  the  amount  of  Energy  measured  at  the  Meter  for  each  Facility,  including  any  adjustments  programmed  into  the  Meter  for  distribution  losses  after  the  Delivery  Point.  

1.68 “Milestone”  means  a  defined  and  significant  event  that  will  occur  during  the  engineering,  construction,  and  installation  of  the  Facility,  as  identified  in  Exhibits  A  and  

 

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B,  and  Schedule  8,  including,  without  limitation,  completion  of  Commissioning  Tests,  issuance  of  a  PG&E  permission  to  operate  notification,  commissioning  of  the  Data  Acquisition  System,  and  the  occurrence  of  the  Actual  Commercial  Operation  Date.    

1.69 “MW”  means  one  megawatt  of  power  or  nameplate  capacity  expressed  as  peak  power  DC  (direct  current).  

1.70 “MWh”  means  one  megawatt  of  electricity  supplied  for  one  hour.  

1.71 “Outage”  means  a  physical  state  in  which  all  or  a  portion  of  the  Facility  is  unavailable  to  provide  Energy  to  the  Delivery  Point.  

1.72 “Output”  means  (i)  the  Contract  Capacity  and  associated  Energy;  (ii)  Test  Energy;  and  (iii)  all  Environmental  Attributes.  

1.73 “Parties”  means  Buyer  and  Seller,  and  each  such  Party’s  respective  successors  and  permitted  assignees.  

1.74 “Party”  means  Buyer  or  Seller,  and  each  such  Party’s  respective  successors  and  permitted  assignees.  

1.75 “Permits”  means  local  authorizations,  certificates,  permits,  licenses,  and  approvals  required  by  any  Governmental  Authority  for  the  construction,  ownership,  operation  and  maintenance  of  a  Facility.  

1.76 “Person”  means  an  individual,  corporation,  partnership,  Limited  Liability  Company,  business  trust,  joint  stock  company,  trust,  unincorporated  association,  joint  venture,  firm,  or  other  entity,  or  a  Governmental  Authority.  

1.77 “”  means  ,  who  is  the  Local  Electric  Utility,  as  defined  herein.  

1.78 “Preliminary  Requirements”  has  the  meaning  set  forth  in  Section  3.7.  

1.79 “Project  Site”  means  the  real  property,  on  which  each  Facility  is  to  be  built  and  located,  as  described  in  Schedule  5  to  this  Agreement  (Project  Site  Description).  

1.80 “Prudent  Industry  Practice”  means  those  practices,  methods  and  equipment,  as  changed  from  time  to  time,  that:  (i)  when  engaged  in,  or  employed,  are  commonly  used  in  the  State  of  Virginia  in  prudent  electrical  engineering  and  operations  to  operate  electricity  equipment  lawfully  and  with  safety,  reliability,  efficiency  and  expediency;  or  (ii)  in  the  exercise  of  reasonable  judgment  considering  the  facts  known,  when  engaged  in  could  have  been  expected  to  achieve  the  desired  result  consistent  with  applicable  law,  safety,  reliability,  efficiency,  and  expediency.   Prudent  Industry  Practices  include  but  are  not  limited  to  an  optimum  practice,  method,  selection  of  equipment  or  act.  

 

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1.81 “Purchase  Date”  means  the  91st  day  of  every  year  following  the  6th  year  anniversary  of  the  Actual  Commercial  Operation  Date.  

1.82 “Renewable  Energy  Credit”  has  the  meaning  defined  by  the  Virginia  State  Corporation  Commission,  as  may  be  amended  from  time  to  time  or  as  further  defined  or  supplemented  by  applicable  law.  

1.83 “Renewal  Term”  has  the  meaning  set  forth  in  Article  2.1.  

1.84 “Requirements  of  Law”  means,  collectively,  any  federal  or  state  law,  treaty,  franchise,  rule,  regulation,  order,  writ,  judgment,  injunction,  decree,  award  or  determination  of  any  arbitrator  or  a  court  or  other  Governmental  Authority,  in  each  case  applicable  to  or  binding  upon  Seller  or  Buyer  or  any  of  their  property  or  to  which  Seller  or  Buyer  or  any  of  their  respective  properties  are  subject.  

1.85 “Schedule”  “Scheduled”  or  “Scheduling”  means  the  actions  of  Seller,  Buyer  and  /or  their  designated  representatives,  including  each  Party’s  Local  Electric  Utility,  if  applicable,  of  notifying,  requesting  and  confirming  to  each  other  the  quantity  of  Energy  to  be  delivered  for  each  interval  on  any  given  day  on  which  the  delivery  of  Energy  is  scheduled  to  occur  during  the  Term  at  the  Delivery  Point.  

1.86 “Seller”  has  the  meaning  set  forth  in  the  first  paragraph  of  this  Agreement,  and  for  purposes  of  access  rights  and  other  rights  necessary  for  Seller  to  perform  its  obligations  hereunder,  the  term  “Seller”  includes  Seller’s  authorized  agents,  contractors  and  subcontractors.    

1.87 “Seller  Address”  means:    

.  

1.88 ‘Seller  Default”  has  the  meaning  set  forth  in  Section  10.2(a).  

1.89 “Seller’s  Project  Management  Team”  means  individuals  identified  by  Seller  as  responsible  for  oversight  and  contract  management  of  all  phases  of  project  design/build,  operations,  maintenance,  verification  and  billing  account  management.  

1.90 “Solar  Insolation”  means  the  amount  of  solar  energy  in  kWh  per  square  meter  falling  on  a  particular  location.  

1.91 “Substantial  Completion”  means  when  (i)  installation  of  all  necessary  components  and  systems  of  a  Facility  (except  for  completion  of  painting,  final  grading,  and  similar  portions  of  the  construction  work  not  affecting  the  operability,  safety,  or  mechanical  and  electrical  integrity  of  the  Facility)  have  been  completed;  (ii)  the  Facility  is  mechanically  and  electrically  sound;  and  (iii)  the  Facility  is  ready  for  initial  operation,  adjustment,  and  testing.  

1.92 “Taxes”  has  the  meaning  set  forth  in  Section  5.2.  

 

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1.93 “Term”  has  the  meaning  set  forth  in  Section  2.1.  

1.94 “Transmission  System”  or  “Local  Electric  Utility  Electricity  Grid”  means  the  facilities  used  for  the  distribution  and  transmission  of  electricity,  including  any  modifications  or  upgrades  made  to  such  facilities,  owned  or  operated  by  the  Local  Electric  Utility.  

1.95 “WREGIS”  means  the  Western  Renewable  Energy  Generation  Information  System  or  any  successor  renewable  energy  tracking  program.  

ARTICLE  2:  TERM  

2.1 TERM:  The  term  of  this  Agreement  shall  commence  on  the  Effective  Date  and  shall  continue  for  twenty  (20)  years  from  the  Actual  Commercial  Operation  Date  of  the  Facility  (“Initial  Term”,  and  together  with  any  Renewal  Terms,  the  “Term”),  unless  and  until  terminated  earlier  pursuant  to  the  provisions  of  this  Agreement.  After  the  Initial  Term,  this  Agreement  may  renew  for  a  Facility,  or  all  of  the  Generating  Facilities,  for  additional  five  year  terms  (each  a  “Renewal  Term  ”),  if  a  written  request  for  renewal  is  given  by  the  Buyer  at  least  one  hundred  eighty  (180)  days  prior  to  the  expiration  of  the  Initial  Term,  or  any  Renewal  Term,  as  the  case  may  be.  For  each  renewed  Facility,  the  Parties  shall  confer  and  agree  on  a  schedule  for  the  Contract  Price,  Escalation  Rate,  Early  Termination  Fees,  and  Expected  Annual  Contract  Quantity  for  any  Renewal  Term.  The  remainder  of  the  terms  and  conditions  shall  remain  substantially  the  same  for  each  Renewal  Term  as  for  the  Initial  Term.  If  Seller  consents  to  renewal  of  a  Facility,  it  shall  provide  written  notice  of  consent  to  the  renewal  within  sixty  (60)  days  of  the  date  of  the  request  by  Buyer.  If  consent  by  Seller  is  not  provided  within  such  sixty  (60)  day  period,  this  Agreement  shall  expire  as  to  that  Facility  as  of  the  last  day  of  the  Initial  Term.  No  later  than  sixty  (60)  days  after  Seller  provides  consent  to  a  Renewal  Term,  which  consent  shall  state  the  mutually  agreed  upon  schedule  for  the  Price,  Escalation  Rate,  Early  Termination  Fees,  and  Expected  Annual  Contract  Quantity  for  such  Renewal  Term,  Buyer  shall  confirm  to  Seller  in  writing  of  its  intent  to  proceed  with  its  option  for  a  Renewal  Term.  Documentation  of  any  such  Renewal  Term  and  changes  to  Contract  Price,  Early  Termination  Fees  and  Expected  Annual  Contract  Quantity  shall  be  in  the  form  of  an  amendment  to  this  Agreement.    In  the  event  Buyer  does  not  provide  such  confirmation,  this  Agreement  shall  expire  as  of  the  last  day  of  the  Initial  Term  or  applicable  Renewal  Term  for  such  Facility.   Upon  expiration  of  the  Initial  or  Renewal  Term,  Seller  shall  cause  the  Facility  to  be  removed  from  the  Project  Site  pursuant  to  Article  10.5(a).  All  timelines  for  action  pursuant  to  this  Section  2.1  may  be  extended  at  the  Parties’  mutual  written  agreement.  

2.2 BUYER’S  EXERCISE  OF  PURCHASE  OPTION:  So  long  as  a  Buyer  Default  shall  not  have  occurred  and  be  continuing,  Buyer  has  the  option  to  purchase  (the  “Purchase  Option”)  a  Facility  for  a  purchase  price  equal  to  its  FMV  (the  “Buyout  Payment”),  at  any  point  after  ninety-‐one  (91)  days  after  the  sixth  (6th)  anniversary  of  the  Actual  Commercial  Operation  Date  of  the  applicable  Facility,  provided,  however,  that  such  date  shall  not  occur  after  the  twentieth  (20th)  anniversary  of  the  Actual  Commercial  Operation  Date,  

 

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unless  the  Initial  Term  is  extended  pursuant  to  Article  2.1.   If  Buyer  chooses  to  exercise  the  Purchase  Option,  the  following  steps  shall  be  followed  by  the  Parties:  

 (a) Buyer  shall  provide  Seller  with  at  least  two  hundred  and  forty  (240)  days  written  

notice  of  its  intent  to  purchase  the  Facility  on  a  date  certain  (such  date,  the  “Buyout  Date”).    

(b) For  a  reasonable  period  not  exceeding  thirty  (30)  days  from  the  date  of  provision  of    notice  referred  to  in  Article  2.2  (a),  the  Parties  shall  make  best  efforts  to  agree  on  the  selection  of  a  nationally  recognized  independent,  third-‐party  professional  appraiser  with  experience  and  expertise  in  the  solar  photovoltaic  industry  to  determine  the  FMV  as  of  the  Buyout  Date.   Within  sixty  (60)  days  of  the  selection  of  such  appraiser,  s/he  shall  evaluate  and  determine  the  FMV  of  the  applicable  Facility  as  of  the  Buyout  Date  and  shall  submit  a  report  on  same  to  the  Parties.   The  costs  of  the  appraisal  shall  be  borne  by  Buyer.  

(c) In  the  event  that  the  Parties  cannot  agree  on  the  selection  of  an  appraiser  to  determine  the  FMV,  each  Party  shall,  no  later  than  sixty  (60)  days  from  the  date  of  notice  referred  to  in  Article  2.2(a),  retain  the  services  of  a  nationally  recognized  independent,  third-‐party  professional  appraiser  with  experience  and  expertise  in  the  solar  photovoltaic  industry.    Each  Party  shall  bear  its  own  costs  for  its  respective  appraiser  and  of  any  appraisal  conducted  by  him/her.   Within  fifteen  (15)  days  of  their  retention,  the  two  appraisers  selected  by  the  Parties  shall  mutually  select  a  third  nationally  recognized  independent,  third-‐party  appraiser  with  experience  in  the  solar  photovoltaic  industry,  whose  services  shall  be  equally  paid  for  by  the  Parties.   Within  sixty  (60)  days  of  the  selection  of  such  third  appraiser,  the  three  appraisers  shall  evaluate  and  determine  the  FMV  of  the  Facility  and  shall  submit  their  reports  to  both  Parties.   The  appraiser’s  valuation  that  diverges  the  greatest  from  each  of  the  other  two  appraisers’  valuations  shall  be  disregarded,  and  the  arithmetic  mean  of  the  remaining  two  appraisers’  valuations  shall  be  deemed  to  be  the  FMV  of  the  Facility.   If  no  such  valuation  may  be  established  then  the  arithmetic  mean  of  all  three  valuations  shall  be  deemed  to  be  the  FMV  of  the  Facility.   The  appraisers  shall  conduct  their  appraisals  independently  and  shall  not  share  the  results  of  their  appraisal  or  data  with  each  other.  

(d) No  later  than  sixty  (60)  days  after  determination  of  the  FMV  of  the  Facility,  Buyer  shall  confirm  to  Seller  in  writing  of  its  intent  to  proceed  with  its  option  to  purchase  the  Facility  at  the  Buyout  Payment  determined  pursuant  to  this  Article  2.2.   In  the  event  Buyer  does  not  provide  such  written  confirmation,  the  provisions  of  this  Agreement  shall  be  applicable  as  if  Buyer  had  not  exercised  the  Purchase  Option.  

(e) If  Buyer  confirms  its  intent  to  proceed  with  its  option  to  purchase  as  specified  above,  the  Parties  shall  promptly  execute  all  documents  necessary  to  (i)  cause  title  and  ownership  of  the  Facility  to  pass  to  Buyer  on  the  Buyout  Date,  free  and  clear  of  any  Liens,  and  (ii)  to  the  extent  such  warranties  are  assignable,  assign  all  warranties  

 

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for  the  Facility  to  Buyer.   Buyer  shall  pay  the  Buyout  Payment  to  Seller  on  or  about  the  Buyout  Date,  in  accordance  with  any  previous  written  instructions  delivered  to  Buyer  by  Seller  for  payments  under  this  Agreement.   Upon  such  execution  of  documents  and  payment  of  the  Buyout  Payment,  as  to  the  applicable  Facility  this  Agreement  shall  terminate  automatically  and  Buyer  shall  own  the  applicable  Facility  and  all  Environmental  Attributes  and  Existing  Financial  Incentives,  if  any,  relating  to  the  Facility.   For  the  avoidance  of  doubt,  payment  of  the  Buyout  Payment  shall  be  in  lieu  of  and  instead  of  any  payments  described  in  Article  4  accruing  from  and  after  the  Buyout  Date.   Seller  shall  provide  all  necessary  cooperation  with  the  Buyer  to  give  prompt  effect  to  this  transfer.  

 (f) All  other  personal  property  of  the  Seller  not  included  in  the  Buyer’s  purchase  shall  

be  removed  by  Seller  from  the  Project  Site  within  ninety  (90)  days  of  the  Buyout  Date  at  no  cost  to  Buyer.  

 2.3 TERMINATION:    Buyer  may  terminate  this  Agreement  as  to  any  Facility  prior  to  the  

expiration  of  the  Initial  Term  without  cause  upon  sixty  (60)  days’  prior  written  notice.    If  Buyer  elects  to  terminate  this  Agreement  for  any  Facility  without  cause,  Buyer  shall  pay  to  Seller  the  applicable  Early  Termination  Fee  set  forth  in  Schedule  2  of  this  Agreement.  However,  if  Buyer  terminates  this  Agreement  for  reasons  otherwise  specified  in  this  Agreement  including,  but  not  limited  to:  (i)  termination  for  CEQA  compliance  (Section  3.6);  (ii)  termination  for  Force  Majeure  (Article  8);  (iii)  termination  for  failure  of  the  Preliminary  Requirements  (Section  3.9);  or  (iv)  termination  before  commercial  operation  (Section  3.9),  Buyer  is  not  liable  to  the  Seller  for  the  Early  Termination  Fee.    In  the  event  that  Buyer  terminates  this  Agreement  without  cause,  Seller  shall,  within  one  hundred  eighty  (180)  calendar  days  of  the  notice  of  termination  from  Buyer,  or  Buyer’s  payment  of  the  Early  Termination  Fee,  if  applicable,  shall  cause  the  applicable  Facility  to  be  disconnected  and  removed  from  the  Project  Site,  and  shall  remediate  and  restore  the  Project  Site  to  the  condition  preceding  the  installation  of  the  Facility  as  set  forth  in  Section  10.5.    

ARTICLE  3:  ENGINEERING  AND  CONSTRUCTION  REQUIREMENTS  

3.1 Seller  shall  provide  services  as  described  herein  and  pursuant  to  Exhibit  B  –  Engineering  and  Construction  Requirements.  

3.2 [Intentionally  left  blank].  

3.3 Seller  shall  provide  weekly  status  reports  from  the  Effective  Date  through  the  Actual  Commercial  Operation  Date,  as  well  as  any  additional  briefing  requested  by  Buyer.  

3.4 Seller  will  create,  maintain  and  provide  to  Buyer,  minutes  of  meetings  between  Buyer’s  representatives  and  Seller’s  Project  Management  Team.  

3.5 Virginia  DEQ  Compliance  

 

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(a) Compliance  with  the  requirements  set  by  the  Virginia  Department  of  Environmental  Quality  is  a  condition  precedent  to  the  Buyer’s  obligations  under  this  Agreement.  The  Seller  shall  not  have  any  right  to  install  a  Facility  until  the  Buyer  has  fully  complied  with  Virginia  DEQ  regulations,  issued  a  statement  to  Seller  attesting  to  the  fact  that  Buyer  has  fully  complied  with  Virginia  DEQ  regulations  as  it  relates  to  the  Facility  included  in  this  Agreement,  and  issued  a  notice  to  proceed  to  Seller.  In  most  cases,  the  Buyer  expects  to  satisfy  the  Virginia  DEQ  regulations  with  a  Notice  of  Exemption  for  each  Generating  Facility.  

(b) If  the  Buyer,  in  its  discretion,  determines  that  a  mitigated  negative  declaration  (“MND”)  or  environmental  impact  report  (“EIR”)  is  required  to  comply  with  Virginia  DEQ  regulations,  then  Buyer  shall,  provide  Seller  with  a  written  statement  detailing  the  reasons  that  Buyer  believes  that  a  MND  or  an  EIR  is  required  to  comply  with  Virginia  DEQ  regulations,  the  estimated  cost  to  comply  with  Virginia  DEQ  regulations  for  the  Facility,  and  a  statement  that  it  will  or  will  not  pay  for  the  estimated  cost  to  comply  with  Virginia  DEQ  regulations  for  the  Facility.  If  Buyer  declines  to  pay  for  all  of  the  estimated  costs  to  comply  with  Virginia  DEQ  regulations,  then  this  Agreement  shall  terminate  as  to  the  Facility,  and  neither  Party  shall  have  any  liability  to  the  other  Party  (other  than  any  such  liabilities  that  have  accrued  prior  to  such  termination).  

(c) Within  ten  business  days  after  the  Effective  Date,  Buyer  shall  provide  Seller  either  (1)  a  notice  to  proceed  based  on  a  Notice  of  Exemption  under  applicable  law,  or  (2)  the  notice  described  pursuant  to  applicable  law,  including  Buyer’s  election  regarding  payment  of  costs.  

3.6 Engineering  -‐  Design  Phase  

During  this  phase,  Seller  shall  proceed  with  all  activities  necessary  to  allow  commencement  of  the  construction  phase,  including  completing  the  Preliminary  Requirements  (as  set  forth  below)  within  the  timeframes  established  in  Schedule  8  [Project  Site  Milestones].  Upon  completion  of  this  phase,  Seller  shall  proceed  with  the  installation  and  construction  phase.  Seller’s  failure  to  meet  Preliminary  Requirements  will  be  subject  to  Section  3.9  below.    (a) Preliminary  Requirements:  

(i) Prior  to  the  execution  of  this  Agreement,  the  Seller  must  comply  with  the  insurance  requirements  for  the  design  phase  included  as  Exhibit  E  (Insurance  Requirements).  Seller  shall  maintain  such  coverage  throughout  this  phase.  

(ii) Seller  must  comply  with  all  system  design  requirements  set  forth  in  Exhibit  B  [Engineering  &  Construction  Requirements].  

(iii) Within  the  timeframe  set  forth  in  Schedule  8  [Project  Site  Milestones]:  

 

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(1) Seller  shall  notify  the  Buyer  in  writing  of  the  Expected  Commercial  Operation  Date.  The  Expected  Commercial  Operation  Date  shall  be  no  later  than  the  CSI  reservation  expiration  date  which  is  provided  in  Schedule  8  of  this  Agreement,  or  any  extensions  thereof.      

(2) Each  Party,  upon  request,  shall  furnish  current  certificates  evidencing  that  the  insurance  coverage  required  in  Exhibit  E  is  being  maintained.  

(iv) Within  the  timeframe  set  forth  in  Schedule  8  [Project  Site  Milestones]:  

(1) Seller  must  have  obtained  a  financing  commitment  for  construction  of  each  Facility  and  submitted  a  signed  term  sheet  or  redacted  financing  agreement  as  satisfactory  proof  of  such  financing  commitment  to  the  Buyer  or  in  the  alternative,  Seller  may  certify  in  writing  that  Seller  will  be  self-‐financing  the  construction  of  the  Facility  and  that  Seller  has  sufficient  funds  to  do  so.  Such  certification  shall  be  submitted  by  Seller  in  the  Form  of  Certification  in  Exhibit  G  of  this  Agreement  [Form  of  Certification].  

(v) Within  the  timeframe  set  forth  in  Schedule  8  [Project  Site  Milestones]  for  a  Facility,  Seller  must  have  applied  for  a  building  permit  for  the  Facility.  

(vi) Seller  must  have  obtained  approval  from  the  Buyer,  which  shall  not  be  unreasonably  withheld,  conditioned  or  delayed  of  the  final  100%  detailed  engineering  drawings  and  specifications  for  the  Facility.    Seller  must  submit  65%  and  final  100%  detailed  engineering  drawings  and  specifications  for  the  Facility  to  Buyer  for  approval  no  later  than  the  dates  set  forth  in  Schedule  8  [Project  Site  Milestones].  

3.7 Construction  Phase  

(a) Prior  to  the  execution  of  this  Agreement,  the  Seller  must  comply  with  the  insurance  requirements  for  the  construction  phase  included  as  Exhibit  E  (Insurance  Requirements).  Seller  shall  maintain  such  coverage  throughout  this  phase.  

(b) Seller  will  cause  each  Facility  to  be  designed,  engineered,  installed  and  constructed  substantially  in  accordance  with  Exhibit  B  (Engineering  and  Construction  Requirements)  of  this  Agreement  and  Applicable  Law,  including  but  not  limited  to,  the  payment  of  Prevailing  Wages,  as  applicable.   All  construction  of  a  Facility,  including  but  not  limited  to,  any  site  preparation,  landscaping  or  utility  installation,  shall  be  performed  only  by  Seller  or  by  independent  contractors  with  demonstrated  competence  and  experience  in  the  construction  of  the  photovoltaic  systems,  and  duly  licensed  under  the  laws  of  the  State  of  Virginia,  pursuant  to  written  contracts  with  such  contractors.   Prior  to  the  commencement  of  construction  on  a  Facility,  Seller  shall  deliver  to  Buyer  for  its  review  and  approval,  which  approval  shall  not  be  unreasonably  withheld,  delayed,  or  conditioned,   a  complete  set  of  plans  and  

 

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specifications  relating  to  the  installation  of  the  Facility,  which  shall  comply  with  all  applicable  uniform  construction  codes.   Buyer  shall  be  deemed  to  have  approved  such  plans  and  specifications  if  Buyer  fails  to  transmit  notice  of  disapproval  within  the  timeframe  established  in  Schedule  8  [Project  Site  Milestones].   Buyer  shall  have  the  right,  but  not  the  obligation,  to  inspect  all  construction  solely  for  the  purpose  of  confirming  that  Seller  is  adhering  to  the  specifications  provided  for  in  Exhibit  B  (Engineering  and  Construction  Requirements)  to  this  Agreement,  provided  that  Buyer’s  inspections  are  done  at  a  reasonable  frequency  and  during  reasonable  dates  and  times.  

(c) Seller  must  comply  with  all  requirements  set  forth  in  applicable  building  and  electrical  codes  and  Exhibit  B  (Engineering  and  Construction  Requirements).  

3.8 Parties’  Rights  to  Terminate  Prior  to  Commercial  Operation  

(a) Buyer’s  Rights  to  Terminate:   If  Seller  fails  to  complete  the  Preliminary  Requirements  in  conformance  with  Section  3.7  with  respect  to  a  Facility,  Buyer  may  terminate  this  Agreement  as  to  the  applicable  Facility  without  penalty,  liability  or  expense  of  any  kind  to  Buyer  by  providing  to  Seller  a  written  notice  of  termination  after  the  deadline  for  completion  of  the  Preliminary  Requirements;  provided,  however  that  any  such  written  notice  of  termination  for  non-‐compliance  with  Article  3.7,  sections  (a)(i)  –  (a)(v)  shall  be  provided  by  Buyer  to  Seller  prior  to  the  Commencement  of  Work  Date  and  any  written  notice  of  termination  for  non-‐compliance  with  Article  3.7  section  (a)(vi)  may  be  provided  by  Buyer  after  the  Commencement  of  Work  Date.  The  Buyer  may  extend  deadlines  at  its  option.   If  Buyer  elects  to  terminate  this  Agreement  pursuant  to  this  Section  3.9(a),  Seller  shall  take  all  actions  necessary  to  return  the  Project  Site  to  the  condition  Seller  first  encountered  them,  at  no  cost  to  the  Buyer.  Buyer’s  right  to  terminate  hereunder  shall  not  be  subject  to  the  alternative  dispute  resolution  procedures  in  Section  9.1.    If  Buyer  determines  that  it  wishes  to  exercise  its  termination  right  pursuant  to  this  Section  3.9(a),  Buyer  shall  give  written  notice  to  Seller  within  fifteen  (15)  days  of  such  determination,  specifying  the  basis  for  the  termination.  Upon  receiving  such  notice,  if  Seller  is  able  to  cure,  Seller  shall  have  45  days  to  provide  a  cure  for  the  circumstance  identified  by  Buyer  as  the  basis  for  termination.  The    Buyer  shall  not  exercise  its  rights  under  section  3.9(a)  until  it  has  provided  a  written  notice  to  the  Seller  of  its  intent  to  do  so  and  allowed  the  Seller  45  days  to  attempt  to  cure.  The  Seller  shall  have  the  option,  but  not  the  obligation,  to  cure.  

(b) Seller’s  Rights  to  Terminate:  In  the  event  that  any  of  the  following  events  or  circumstances  occur  prior  to  the  Actual  Commercial  Operation  Date  for  a  Facility,  Seller  may  (at  its  sole  discretion)  terminate  this  Agreement,  subject  to  Sections  3.9(d)  and  (e),  as  to  the  Facility,  in  which  case  neither  Party  shall  have  any  liability  to  the  other  Party  as  to  the  Facility:  

(i) Seller  has  not  received  a  fully  executed  (i)  Grant  of  Access  Right  (Schedule  1  to  this  Agreement),  and  (ii)  a  release  or  acknowledgement  from  any  mortgagee  of  

 

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the  Project  Site,  if  required  by  Seller  or  Seller’s  Financing  Party,  to  establish  the  priority  of  its  security  interest  in  the  Facility.  

(ii) Seller,  after  making  best  efforts  to  do  so,  has  not  received  evidence  that  interconnection  services  will  be  available  with  respect  to  energy  generated  by  the  Facility.  

(iii) Seller  has  reasonably  determined  that  there  are  easements,  covenants,  conditions,  or  restrictions  or  other  liens  or  encumbrances  that  would  materially  impair  or  prevent  the  installation,  operation,  maintenance  or  removal  of  the  Facility.  

(c) Mutual  Rights  to  Termination:      Either  Party  shall  have  the  right  to  terminate  this  Agreement,  without  liability  to  the  other  Party  if:  

(i) Seller  and  Buyer  mutually  determine  that  the  Project  Site,  as  is,  is  insufficient  to  accommodate  the  Facility.  

 (ii)  Seller  and  Buyer  mutually  agree  that  there  exist  site  conditions  at  the  Project  

Site  (including  environmental  conditions)  or  construction  requirements  that  were  not  known  as  of  the  Effective  Date  and  that  could  reasonably  be  expected  to  materially  increase  the  cost  of  installing  the  Facility  or  would  adversely  affect  the  electricity  production  from  the  Facility  as  designed.  

 (iii) Seller  and  Buyer  have  reasonably  determined  that  there  has  been  a  material  

adverse  change  in  the  rights  of  the  Buyer  to  occupy  the  Project  Site  or  the  Seller  to  construct  the  Facility  on  the  Project  Site.  

(d) Remediation:  If  Seller  wishes  to  exercise  its  termination  rights  listed  in  Section  3.9(b)  with  regard  to  a  specific  Facility,  Seller  shall  take  all  actions  necessary  to  return  the  Buyer’s  Project  Site  where  the  applicable  Generating  Facility  was  to  be  installed  to  the  condition  the  Seller  first  encountered  it  in  within  ninety  (90)  days.  

(e) Buyer  Option  to  Cure:  Notwithstanding  anything  to  the  contrary,  if  Seller  determines  that  it  wishes  to  exercise  termination  pursuant  to  section  3.9(b),  Seller  shall  give  written  notice  to  Buyer  within  15  days  of  such  determination,  specifying  the  basis  for  the  termination.   Upon  receiving  such  notice,  if  Buyer  is  able  to  cure,  Buyer  shall  have  45  days  to  provide  a  cure  for  the  circumstance  identified  by  Seller  as  the  basis  for  termination.   The  Seller  shall  not  exercise  its  rights  under  section  3.9(b)  until  it  has  provided  a  written  notice  to  the  Buyer  of  its  intent  to  do  so  and  allowed  the  Buyer  45  days  to  attempt  to  cure.   The  Buyer  shall  have  the  option,  but  not  the  obligation,  to  cure.  

 ARTICLE  4:  DELIVERY  OF  POWER,  METERING  &  MONITORING  

 

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4.1 Purchase  &  Sale  

(a) Commencing  on  the  Actual  Commercial  Operation  Date  and  continuing  throughout  the  Term,  subject  to  this  Article  4,  Seller  shall  sell  and  deliver  at  the  Delivery  Point,  and  Buyer  shall  purchase  and  accept  from  Seller  at  the  Delivery  Point,  and  pay  for,  the  Output  as  follows:  

Energy   Pricing:   The   pricing   for   Energy   delivered   at   the   Delivery   Point   shall   be  the   Contract   Price   for   the   current   Contract   Year.       The   invoice   for   Energy  delivered   by   the   Seller   for   the   applicable   monthly   billing   period   shall   be  determined  as  follows:    P  =   Payment  to  Seller  for  Energy  supplied  to  the  Buyer  over  the  billing  

period.  P  =   EE  x  EP  

 EE  =   the  total  kWh  of  Delivered  Energy  to  Buyer  by  Seller  during  the  billing  period.  

 EP=  the  Contract  Price  as  per  Schedule  6  to  this  Agreement  –  [Contract  Price].  

 (b) Intentionally  left  blank.  

(c) Meters  

(i) The  transfer  of  Energy  from  Seller  to  Buyer  shall  be  measured  by  Meters  at  the  Delivery  Point,  which  are  selected,  provided,  installed,  owned,  maintained,  programmed  and  operated,  at  the  Seller’s  sole  cost  and  expense,  by  Seller  or  its  designee.  Meters  and  all  metering  activities  shall  comply  with  all  applicable  requirements  of  the  Local  Electric  Utility  Tariffs  and  the  Buyer-‐PG&E  Interconnection  Agreement.  Seller  shall  exercise  reasonable  care  in  the  maintenance  and  operation  of  the  Meters,  and  shall  test  and  verify  the  accuracy  of  each  Meter  at  least  every  two  (2)  years.  Seller  shall  inform  Buyer  in  advance  of  the  time  and  date  of  these  tests,  and  shall  permit  Buyer  to  be  present  at  such  tests  and  to  receive  the  results  of  such  tests.   Metering  must  have  an  equivalent  accuracy  of  +/-‐  2%  or  better  and  monitoring  results  from  Seller’s  Performance  Monitoring  and  Reporting  Service  (PMRS)  that  is  viewable  by  Buyer  at  all  times.    

(ii) Single  Viewing  Kiosk  for  the  Generating  Facility:   At  the  location  of  Buyer’s  choice,  Seller  will  install  a  single  Kiosk  for  viewing  by  the  general  public  consisting  of  a  20”LCD  screen  with  a  computer  and  keyboard  sufficient  to  view  the  Data  Acquisition  System  (“DAS”)  monitoring  of  the  Generating  Facilities.  The  computer  and  keyboard  shall  be  housed  in  a  cabinet  whose  design,  aesthetics,  and  cost  are  mutually  agreed  upon  by  Buyer  and  Seller.   Buyer  will  allow  Seller  to  use  a  120v  electrical  outlet  and  data  outlet  located  at  the  mutually  agreed  upon  location  which  will  be  within  a  reasonable  distance  of  an  

 

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existing  120v  electrical  outlet.   Seller’s  total  installed  cost  of  the  Kiosk  shall  not  exceed  $5,000  US  dollars.    Following  installation,  Buyer  shall  provide  and  maintain  communications  equipment  and  services  to  the  Kiosk.    

(iii) Communications  Equipment.  After  the  Actual  Operating  Date  Seller  shall  install,  own  and  maintain,  at  its  sole  cost  and  expense,  communications  equipment  and  services  necessary  to  allow  remote  reading  of  the  Meters.  

(iv) Meter  Updates.  Seller  shall  at  its  sole  cost  and  expense,  install  any  updates  or  upgrades  to  the  Meters,  and  all  associated  measuring  equipment  necessary  to  permit  an  accurate  determination  of  the  quantities  of  Energy  delivered  under  this  Agreement.  Seller  shall  permit  the  Buyer  or  Buyer’s  representative  access  to  its  Generating  Facility  for  the  purpose  of  verifying  Meters.  

     

(d) Delivery  Obligation.  Beginning  on  the  Actual  Commercial  Operation  Date  for  each  applicable  Generating  Facility,  such  Generating  Facility  shall  produce  not  less  than  90%  of  the  applicable  Expected  Annual  Contract  Quantity  (after  accounting  for  weather-‐  related  and  seasonal  changes)  during  the  Initial  Term  or  applicable  Renewal  Term,  if  any,  measured  on  a  rolling,  two  (2)-‐year,  cumulative  basis  (the  “Measurement  Period”),  unless,  and  then  only  to  the  extent  that,  the  failure  to  satisfy  the  Expected  Annual  Contract  Quantity  is  due  to  (a)  Facility  failure,  damage  or  downtime  attributable  to  third  parties,  (b)  resulting  from  general  utility  outages  or  any  failure  of  any  electric  grid,  (c)  a  Force  Majeure  Event  or  (d)  acts  or  omissions  of  Buyer  of  any  of  its  obligations  hereunder,  provided  Buyer  has  received  prior  written  notice  from  Seller  of  such  acts  or  omissions  (such  losses  “Lost  Output”).  Subject  to  the  terms  and  conditions  of  this  Agreement,  beginning  on  the  second  anniversary  of  the  Actual  Commercial  Operation  Date,  if  the  actual  output  of  such  Generating  Facility  for  the  two  (2)  year  period  prior  to  such  anniversary  (the  “Actual  System  Output”)  does  not  equal  or  exceed  the  Expected  Annual  Contract  Quantity  for  such  two  (2)  year  period,  Seller  will  credit  Buyer  on  its  next  invoice  an  amount  equal  to  the  product  of  (i)  the  average  of  the  annual  Contract  Prices  found  in  the  applicable  site  Schedule  6  during  such  Measurement  Period  multiplied  by  (ii)  the  difference  between  the  Actual  System  Output  plus  the  Lost  Output  and  the  Expected  Annual  Contract  Quantity  for  such  Measurement  Period.  

(e)    Excess  Energy.      Buyer  agrees  to  purchase  up  to  110%  of  the  Expected  Annual  Contract  Quantity  each  Contract  Year.  Buyer  shall  have  the  option,  but  not  the  obligation,  to  purchase  the  Output  of  any  particular  Generating  Facility  that  exceeds  110%  of  the  Expected  Annual  Contract  Quantity.  Seller  will  first  offer  any  Energy  beyond  the  110%  cap  to  Buyer  and,  only  if  Buyer  does  not  exercise  its  option  to  purchase  all  or  a  portion  of  such  excess  Energy,  Seller  shall  be  permitted  to  resell  the  excess  Energy,  provided  such  sale  is  in  accordance  will  all  applicable  laws  

 

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 4.2 Monitoring  System  and  Web  Interface  

(e) Seller  shall  install,  maintain,  control,  and  operate  a  monitoring  system  for  each  Facility  meeting  the  following  requirements  (the  “Monitoring  System”):  

(i) The  Monitoring  System  shall  include,  without  limitation,  ability  to  monitor  revenue  grade  AC  production  data;  weather  data,  (including  ambient  temperature  and  wind  speed);  and  shall  include  a  pyranometer.  

(ii) Seller  shall  make  available  to  Buyer  a  web-‐based  tool  or  interface  to  view,  collect  and  store  data,  in  real  time,  including  the  energy  delivered,  and  greenhouse  gas  emissions  reduced.  

(iii) The  Monitoring  System  shall  meet  or  exceed  PG&E  monitoring  and  reporting  standards.    

(iv) Additional  requirements  and  specifications  for  monitoring  are  described  in  Exhibit  C  –  (Operations  Forecasts,  Scheduling  Protocols,  &  Monitoring).  

4.3 Delivery  Point  

(a) Allocation  of  Costs  and  Risks.  Except  as  expressly  set  forth  in  this  Agreement,  Seller  is  responsible  for  any  costs  or  charges  imposed  on  or  associated  with  the  Output  or  the  delivery  of  the  Output  hereunder  up  to  and  at  the  Delivery  Point.  Except  as  expressly  set  forth  in  this  Agreement,  the  Buyer  is  responsible  for  any  costs  or  charges  imposed  on  or  associated  with  the  Output,  or  its  receipt,  after  the  Delivery  Point.  

4.4 Environmental  Attributes  

(a) Throughout  the  Term,  Seller  shall  transfer  to  Buyer,  and  Buyer  shall  receive  from  the  Seller,  all  rights,  title  and  interest  in  and  to  the  Environmental  Attributes,  if  any,  whether  now  existing  or  subsequently  generated  or  acquired  (other  than  by  direct  purchase  from  a  third  party)  by  Seller,  or  that  hereafter  come  into  existence,  during  the  Term,  as  a  component  of  the  Output  purchased  by  Buyer  from  Seller  hereunder.  Seller  agrees  to  transfer  and  make  such  Environmental  Attributes  available  to  Buyer  immediately  to  the  fullest  extent  allowed  by  applicable  law  upon  Seller’s  production  or  acquisition  of  the  Environmental  Attributes.  Seller  agrees  that  the  Contract  Price,  as  applicable  is  the  full  compensation  for  all  Environmental  Attributes.  

(b) Seller  shall  not  assign,  transfer,  convey,  encumber,  sell  or  otherwise  dispose  of  any  portion  of  the  Environmental  Attributes  to  any  Person  other  than  Buyer.  

(c) During  the  Term,  Seller  shall  not  report  to  any  Person  that  the  Environmental  Attributes  granted  hereunder  to  the  Buyer  belong  to  anyone  other  than  the  Buyer,  

 

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and  the  Buyer  may  report  under  any  program  that  such  attributes  purchased  hereunder  belong  to  it.  

(d) PJM.    If  requested  by  Buyer,  and  at  Buyer’s  expense,  prior  to  the  Actual  Commercial  Operation  Dates  of  a  Facility,  Seller  shall  register  the  Facility  in  PJM,  and  take  all  other  actions  necessary  to  ensure  that  the  Energy  or  Environmental  Attributes  produced  by  the  Facility  are  issued  and  tracked  through  PJM  for  purposes  of  satisfying  the  requirements  of  the  Virginia  Renewable  Energy  Portfolio  Standard  and  transferred  to  Buyer,  as  applicable.    

(e) Seller  shall  document  the  production  of  Environmental  Attributes  under  this  Agreement  by  delivering  on  an  annual  basis  to  Buyer  an  attestation  of  Environmental  Attributes  produced  by  the  Facility  and  purchased  by  Buyer  in  the  preceding  Contract  Year.  On  or  before  the  Anniversary  Date  of  each  year  following  a  Contract  Year,  Seller  shall  document  the  transfer  of  Environmental  Attributes  to  Buyer  under  this  Agreement  by  delivering  to  the  Buyer  an  attestation  of  Environmental  Attributes  transferred  under  this  Agreement  in  the  preceding  Contract  Year.  The  form  of  attestation  is  set  forth  as  Exhibit  D  [Form  of  Attestation].  Exhibit  D  [Form  of  Attestation]  hereto  may  be  updated  or  changed  by  Buyer  as  necessary  to  ensure  that  the  Buyer  receives  full  and  complete  title  to,  and  the  ability  to  record  with  any  EA  Agency  as  its  own,  all  of  the  Environmental  Attributes  purchased  hereunder.  

(f) Documentation.  At  Buyer’s  option,  the  Parties,  each  at  the  Buyer’s  expense,  shall  execute  all  such  documents  and  instruments  in  order  to  effect  the  transfer  of  the  Environmental  Attributes  specified  in  this  Agreement  to  the  Buyer  or  its  designees,  as  Buyer  may  reasonably  request.  Upon  notification  by  an  EA  Agency  that  any  transfers  contemplated  by  this  Agreement  will  not  be  recorded,  the  Parties  shall  promptly  cooperate  in  taking  all  reasonable  actions  necessary  so  that  such  transfer  can  be  recorded.  Each  Party  shall  promptly  give  the  other  Party  copies  of  all  documents  it  submits  to  the  EA  Agency  to  effectuate  any  transfers.  

4.5 Tax  Credits  and  Financial  Incentives  

(a) Buyer  agrees  to  provide  Seller  information  and  documentation  in  support  of  Seller’s  rights  and  interests  in  Internal  Revenue  Service  tax  related  benefits.  In  connection  with  Buyer’s  rights  and  interests  in  performance  based  incentive  payments  to  be  made  under  the  CSI  after  the  Actual  Commercial  Operation  Date,  Seller  agrees  to  cooperate  with  Buyer,  including  signing  authorizations  needed  by  Buyer,  to  obtain  any  such  performance  based  incentives.  

ARTICLE  5:  BILLING  AND  PAYMENT  

5.1 Billing  and  Payment  

 

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(a) During  the  Term  on  a  monthly  basis  Seller  shall  invoice  Buyer,  and  Buyer  shall  make  payment  for  Energy  delivered  to  Buyer,  in  accordance  with  Article  4.  Such  payment  is  full  compensation  to  Seller  for  the  Delivered  Energy  received  under  this  Agreement.  Invoices  furnished  by  Seller  under  this  Agreement  must  be  in  a  form  acceptable  to  the  Buyer,  and  must  include  a  unique  invoice  number.  

(b) All  payments  shall  be  made  on  or  before  thirty  (30)  days  after  receipt  of  an  invoice.  Each  Party  shall  make  payments  by  electronic  funds  transfer,  if  available,  or  by  other  mutually  agreeable  method(s),  to  the  account  designated  by  the  other  Party.  

(c) All  payments  made  hereunder  shall  be   made  free  and  clear  of  any  tax,  levy,  assessment,  duties  or  other  charges  and  except  as  specifically  set  forth  herein,  not  subject  to  reduction,  withholding,  set-‐off,  or  adjustment  of  any  kind.  

(d) Disputed  Payments.    If  a  bona  fide  dispute  arises  with  respect  to  any  invoice,  Buyer  shall  pay  the  undisputed  portion  of  the  invoice  and  state,  in  writing,  the  basis  for  the  dispute.  The  Buyer  shall  not  be  deemed  in  default  under  this  Agreement  for  withholding  payment  for  any  disputed  portion  of  the  invoice,  and  the  Parties  shall  not  suspend  the  performance  of  their  respective  obligations  hereunder.  If  an  amount  disputed  by  Buyer  is  subsequently  deemed  to  have  been  due  pursuant  to  the  applicable  invoice,  interest  shall  accrue  at  the  Interest  Rate  on  such  amount  in  dispute  from  the  date  becoming  past  due  under  such  invoice  until  the  date  paid.  

5.2 Allocation  of  Taxes  and  Possessory  Interest  Tax  

(a) Buyer  shall  either  pay  or  reimburse  Seller  for  any  and  all  taxes  assessed  on  the  generation,  sale,  delivery  or  consumption  of  electric  energy  produced  by  the  Generating  Facility  or  the  interconnection  of  the  Generating  Facility  to  the  Utility’s  electric  distribution  system,  including  property  taxes  on  the  Generating  Facility;  provided,  however,  Buyer  will  not  be  required  to  pay  or  reimburse  Seller  for  any  taxes  during  periods  when  Seller  fails  to  deliver  electric  energy  to  Buyer  due  to  the  action  or  omission  of  Seller.    For  purposes  of  this  section,  “Taxes”  means  any  federal,  state  and  local  ad  valorem,  property,  occupation,  generation,  privilege,  sales,  use,  consumption,  excise,  transaction,  and  other  taxes,  regulatory  fees,  surcharges  or  other  similar  charges,  but  shall  not  include  any  income  taxes  or  similar  taxes  imposed  on  Seller’s  revenues  due  to  the  sale  of  energy  under  this  Agreement,  which  shall  be  Seller’s  responsibility.    Nothing  shall  obligate  or  cause  a  Party  to  pay  or  be  liable  to  pay  Taxes  for  which  it  is  exempt  under  the  law.      

ARTICLE  6:  REMOVAL  OF  GENERATING  FACILITY  

6.1 Removal  and  Disposal  Fund  Requirements  

(a) Removal  and  Disposal  Fund  –  General.  In  order  to  ensure  that  funds  are  available  for  the  removal  of  the  Generating  Facilities  and  remediation  of  the  Project  Sites  upon  the  expiration  or  termination  of  this  Agreement,  Seller  agrees  to  establish  an  

 

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interest  bearing  escrow  account  at  a  federally  insured  banking  institution  to  hold  funds  dedicated  for  such  purpose  (the  “Removal  Fund”).  The  terms  for  the  escrow  account  shall  be  reasonably  acceptable  to  the  Buyer  and  the  Seller.  

(b) Interest.  All  interest  earned  shall  become  part  of  the  Removal  Fund.  

(c) Buyer  shall  have  the  right  to  request  and  review  Removal  Fund  balances  at  any  point  prior  to  expiration  of  Term,  upon  written  notice  to  Seller.  

(d) Deposits.  Seller  shall  make  deposits  into  the  Removal  Fund  in  annual  amounts  of  $6  per  KW,  on  the  Actual  Commercial  Operation  Date.  Seller  shall  deposit  equal  annual  amounts  on  the  first  day  of  each  subsequent  Anniversary  Date  during  the  Term.  Seller  agrees  to  deposit  the  annual  amount  until  the  Removal  Fund  (including  interest  income)  has  a  balance  equal  to  or  greater  than  $120  per  KW  of  nameplate  capacity  of  the  Generating  Facilities.   Funds  from  the  Removal  Fund  shall  be  disbursed,  as  needed,  on  a  pro-‐rata  per  KW  basis  for  individual  Project  Sites;  however,  Seller’s  costs  of  removal  shall  not  be  limited  to  amounts  deposited  in  the  Removal  Fund.  

(e) Estimate  of  Removal  Costs.  No  later  than  five  hundred  and  forty-‐five  (545)  days  prior  to  the  expiration  of  the  Term  for  each  Facility,  Seller  shall  provide  Buyer  a  written  estimate  of  the  cost  to  remove  the  applicable  Facility  and  restore  the  applicable  Project  Site  to  its  condition  prior  to  the  installation  of  the  Facility.  The  Parties  shall  meet  and  confer  within  thirty  (30)  days  after  such  written  estimate  is  received  by  Buyer  to  resolve  any  concerns  regarding  such  estimated  cost.  Upon  the  Parties’  agreement  on  the  removal  cost  estimate,  Seller  shall  deposit  additional  funds  into  the  Removal  Fund,  if  necessary,  to  ensure  that  the  balance  in  the  Removal  Fund  is  greater  or  equal  to  the  removal  cost  estimate  determined  pursuant  to  this  Section  6.1(e).  

6.2 Abandonment.  

If  Seller  fails  to  complete  its  removal  and  restoration  obligations  under  this  Agreement  within  one  hundred  eighty    (180)  Days  after  termination  of  this  Agreement,  then,  in  addition  to  Buyer’s  other  remedies  under  this  Agreement,  at  law  or  in  equity  for  such  failure,  any  part  of  a  Facility  and  all  personal  property  of  Seller  not  removed  from  the  Project  Site  within  one  hundred  eighty  (180)  Days  after  such  termination  of  this  Agreement  shall  be  deemed  abandoned  by  Seller,  and  shall  become  the  property  of  Buyer,  and  Buyer  may,  at  its  option,  remove  and  warehouse  or  otherwise  dispose  of  such  property  or  retain  ownership  thereof  indefinitely,  as  it  determines  in  its  sole  discretion.  Buyer  shall  have  no  liability  to  Seller  for  any  property  deemed  abandoned  per  this  Section  6.2.  

 ARTICLE  7:  SELLER’S  ADDITIONAL  OBLIGATIONS  

7.1 Seller  shall  provide  Buyer  with  an  as-‐built  plan  set  after  project  completion.  

 

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7.2 Seller  shall  develop,  finance,  own,  maintain  and  operate  the  Generating  Facilities  in  accordance  with  this  Agreement  including  the  technical  requirements  set  forth  in  Exhibits  A  [Technical  and  Warranty  Requirements]  and  B  [Engineering  and  Construction  Requirements],  access  rights  to  the  Project  Sites,  all  Requirements  of  Law,  all  Permits,  the  Local  Electric  Utility  Tariffs  and  Prudent  Industry  Practice.  Additionally,  Seller  shall  obtain  the  warranties  described  in  Exhibit  A  [Technical  and  Warranty  Requirements]  for  the  equipment  detailed  therein.  

7.3 Milestones  

(a) Generally.  

Seller  shall  diligently  pursue  all  Milestones  established  pursuant  to  Exhibits  A  and  B,  Schedule  8,  and  the  Expected  Commercial  Operation  Date.  The  Parties  agree  that  time  is  of  the  essence  in  connection  with  the  completion  of  the  Generating  Facilities,  and  that  Milestones  for  the  development,  financing  and  construction  of  the  Generating  Facilities  must  be  achieved  in  a  timely  fashion.  Seller  will  use  best  commercial  efforts  to  achieve  the  Milestones  mutually  agreed  to  at  the  time  this  PPA  is  executed  by  the  Seller  and  Buyer.    

(b) Weekly  Reports.  

Unless  otherwise  specified  in  this  Agreement,  starting  on  the  Effective  Date,  Seller  shall  provide